Coinbase is likely to purchase 2TM, one of Brazil’s largest crypto startups according to a story published on Sunday, March 27.
According to reports, 2TM is a Brazilian holding company controlling Mercado Bitcoin, Latin America’s largest crypto brokerage, by the end of April 2022.
This would be part of Coinbase’s effort to extend its footprint in Brazil’s increasingly competitive market. Coinbase, on the other hand, has yet to issue an official statement on the matter.
The acquisition of crypto unicorn 2TM will allow Coinbase the ability to secure a market leader position in Latin America, according to the local newspaper O Estado de S.Paulo. Following the most recent Series B funding, the holding company that owns Mercado Bitcoin, Meubank, MB Digital Assets, Bitrust, Blockchain Academy, and MezaPro is valued at $2.2 billion.
2TM will also be able to accelerate its growth in Latin America and other countries such as Colombo, Chile, Mexico, and Argentina as a result of the acquisition.
Binance vs. Coinbase in Latin America
Binance, one of Coinbase’s biggest competitors, is likewise looking to expand its footprint in Brazil and Latin America. Binance was reportedly looking for acquisitions in Brazil, according to a local newspaper.
Brazil’s crypto industry is expected to reach 120 billion reais ($25.3 billion), providing a great opportunity for these players. Binance CEO Changpeng Zhao discussed the exchange’s plans to acquire banks and payment processing companies in Brazil during a recent visit to Sao Paulo.
Furthermore, Binance just signed an MoU for the acquisition of Simpaul Investimentos, a Brazilian securities brokerage. Changpeng Zhao has also traveled to El Salvador, which was the first country to recognize Bitcoin as legal tender. As the crypto market evolves, Zhao has undoubtedly been looking at more opportunities in Latin America. The emergence of market giants such as Coinbase and Binance will enhance market involvement even further.
